The Philippine Securities and Exchange Commission (PSEC) has posted an announcement on its website warning the public not to invest in cryptocurrency trader Gemini's product, Gemini Derivatives. Starting May 1, the product is available in select jurisdictions through the Gemini Foundation platform.

Under Philippine law, derivatives are securities under Philippine law and are therefore subject to PSEC registration. But Gemini lacked the necessary permits and authorizations to operate in the Philippines. In a May 11 statement, the commission stressed that merchants, brokers, dealers or agents who sell or promote unregistered securities could face fines of up to 5 million pesos ($89,826) or 21 years in prison.

The PSEC also noted in its warning that the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) have brought charges against Gemini, And quoted Gary Gensler, chairman of the U.S. SEC, in January when he charged Gemini Earn, the trader's cryptocurrency lending scheme:

"Today's charges build on previous actions to make clear to the market and investing public that cryptocurrency lending platforms and other intermediaries need to comply with our time-tested securities laws." It's not a choice. It's the law."

The Gemini Foundation platform is available in 29 countries, including the Philippines, but not in developed economies such as the United Kingdom, the United States and the European Union.

Gemini was involved in a legal dispute with Digital Currency Group's crypto lender Genesis Global Capital, which declared bankruptcy in January, It locked up $700 million worth of Gemini client funds.